Founder of World Largest Hedge Fund Says He Knows How to Fix Income Inequality
Ray Dalio believes that he has the different way to fix the economy. He is one of the first CEO that have spoken on helping the middle and lower class by adding more equality.
Ray had said during the interview, that “The economy's wealth and opportunities can be divided better, but it must above all else be grown to further benefit Americans over the long-term”. Mr. Dalio furthered his point that over the past year, people have been missing the most important metric which in his eyes is productivity. When workers are equipped with job-relevant skills, companies are innovating, and industries are growing, more products and services are created with more efficiency, and standards of living rise.
Mr. Dalio supports a free market macroeconomic approach. He argues that the trickle down economics the current economy relies on to redistribute wealth is not working. If we continue on the current path, of relatively low taxes on the wealthy and corporations then social upheaval, akin to what it saw during the lead-up to WWII could occur within five years. Ray wants policies that will allocate resources to improving our workforce and stimulating innovation, for the purpose of raising the quality of life for the least wealthy Americans. If raising taxes on the rich is done to fund such a policy, that's great. he said, "And because of good and evil, 'billionaires are evil.' It's not like we could sit down together and figure out what's best."
Since the 2008 financial crisis Mr. Dalio has studied other large financial crisis’s that have happened through out history. Ray believes that the US economy will continue to move ahead, but not in a healthy way. We are already seeing the social upheaval he was talking about now, but he believes that it will get worse. Mr. Dalio believes that the wealthy should be paying higher taxes, but doesn’t think that wealth redistribution will be effective at all.
Mr. Dalio desperately wants Americans to turn to moderate leadership and keep productivity as their North Star as he believes that it will help us all in the long run.